The recently introduced funds are suitable for those investors who are seeking income through global investments but least risky way.
The funds will be managed by Fidelity Management & Research Company (FMRCo), and the fund manager will invest the capital in securities issued anywhere in the world, including the US.
Generally, FMRCo invests 80% of each fund’s assets in equity securities and normally invests primarily in income-producing securities, said the firm.
Commenting on the commencement of the new funds, Fidelity’s Equity Group president Brian Hogan said that in the past decade, increased volatility in the equity markets and historically low US bond yields have created new challenges for many investors.
"With our new global equity income funds, shareholders can benefit from Fidelity’s strong team of investment professionals to help deliver a global equity income strategy that meets the needs of equity income investors, while providing potential income generation from a broader source of dividend paying companies than in the U.S. alone," Hogan added.
Recently, the firm has published a report ‘The Merits of a Global Equity Income Approach’, to educate the investors before making a decision to invest in equity funds.
According to the firm, investment in global equity income funds is suitable as they have a global perspective to equity income such as the potential for higher dividend yields, a wide spectrum of stocks to choose from, and the opportunities created by inefficient markets across the globe.
With the launch of Fidelity Global Equity Income Fund and Fidelity Advisor Global Equity Income Fund, the total number of equity income-oriented funds has reached to 10, with over $32bn in assets under management.
As of 31 March 2012, Fidelity Investments owned assets under administration of $3.7 trillion, including managed assets of $1.6 trillion.
